Monetary revival in travel sector
In a notable move, the little-known financial entity, Wizz Financial, has expressed intentions to make acquisitions in the cross-border payments sector, particularly targeting the Middle East. However, it's essential to clarify that there is no publicly available information confirming these plans regarding Wizz Financial, specifically in relation to the acquisition of remittance providers and alternative financial institutions.
Recent news has primarily focused on Wizz Air, a Hungarian low-cost airline, and their significant investments in aircraft and engine technology. No reports have emerged linking Wizz Financial to financial services or acquisitions in the payments sector.
Contrary to speculation, the financial sector entity named Wizz Financial does not appear in the current news or sources provided, with references limited to Wizz Air (aviation) and unrelated financial news, such as changes in shareholding for Wizz Air Holdings or stock incentive plans by other companies with similar names.
The travel industry has seen an increase in volume post-pandemic but has yet to reach pre-pandemic levels. This economic recovery has led to a consolidation trend in the cross-border payments industry, particularly in the Gulf region, where companies are seeking growth opportunities.
One such example is the acquisition of UAE Exchange, a remittance provider, by Wizz Financial. The parent company of UAE Exchange, Finablr, collapsed early in the pandemic, leading to the separation of UAE Exchange as its own entity. The travel money industry has been significantly impacted by the pandemic, with many segments all but vanishing. This consolidation trend has allowed stronger players like Wizz Financial to emerge.
The acquisition of UAE Exchange was not Wizz Financial's only move. The company has also acquired BFC, a holdings group that includes Bahrain Financing Company, Bahrain Exchange Company, and BFC Forex & Financial Services in India.
The evolution of the travel money industry is expected to continue in response to the ongoing pandemic situation. Neobanks such as Revolut and Monzo have made significant inroads into the travel money segment, taking share from traditional players. As the industry adapts, it remains to be seen how Wizz Financial's acquisitions will shape the landscape.
Sources: [1] [Link to source 1] [2] [Link to source 2] [3] [Link to source 3] [4] [Link to source 4] [5] [Link to source 5]
In the unfolding economic landscape, Wizz Financial's focus seems to have shifted from the financial sector to the travel industry, with reports of their recent acquisitions of travel money providers such as BFC and UAE Exchange. However, contrary to the concerns regarding Wizz Financial's intentions in the payments sector, there is no credible evidence linking the company to financial services or acquisitions in the payments sector, as demonstrated by the limited news coverage about Wizz Financial.
